Question

The price elasticity of demand for hamburger is?

• A. The change in the quantity demanded of hamburger when hamburger increases by $30$. Paise per rupee
• B. The percentage increase in the quantity demanded of hamburger when the price of hamburger falls by $1$ percent per rupee
• C. The increase in the demand for hamburger when the price of hamburger falls by $10$ percent per rupee
• D. The decrease in the quantity demanded of hamburger when the price of hamburger falls by $1$ percent per rupee

Answer 1

Answer: (B)

The percentage increase in the quantity demanded of hamburger when the price of hamburger falls by $1$ percent per rupee

The price elasticity of demand for hamburger is the percentage increase in the quantity demanded of hamburger when the price of hamburger falls by $1$ percent per rupee.